Common Forms Used by Banks Relating to the Bank Secrecy Act

The Bank Secrecy Act (BSA) of 1970 places requirements on financial institutions which are meant to assist the government in detecting and preventing money laundering and underlying crimes.  Perhaps the most commonly known requirement under the BSA is that financial institutions must keep records of and file reports for currency transactions exceeding $10,000.00.  The report filed for each transaction over $10,000.00 is called a currency transaction report (CTR).  The BSA further requires financial institutions to report suspicious activity when there is reason to believe a customer is attempting to structure transactions in order to avoid the CTR filing requirement.  This form is known as a suspicious activity report (SAR).  All CTRs and SARs are sent to government agencies for review. 

But what if you run a cash-intensive business?  For example, you have cash receipts each day that total $9,000.  You go to the bank on Monday and make a $9,000 cash deposit.  You go to the bank on Tuesday with another $9,000 cash deposit.  The pattern continues for the next few days.  Will the bank be required to file a SAR because you are making daily deposits just under the CTR threshold?  To avoid this problem, there is a special form called, FinCEN 110, that the bank can file for “exempt persons.”  Under 31 CFR 103.22, a business is generally eligible for exemption from the CTR filing requirements if (1) it has maintained a transaction account at the bank for at least two months, (2) it frequently engages in transactions in currency with the bank in excess of $10,000, and (3) is incorporated or organized under the laws of the United States or a state.  There are a few other more particularized requirements, but in general, if the business meets these criteria, the bank has discretion to file Form 110. 


This blog is intended for informational purposes only, and should not be considered legal advice.  

Comments

Post a Comment

Popular posts from this blog

Texas Tax Amnesty Program

The Texas Tax Amnesty Program begins May 1, 2018, and runs through June 29, 2018.  This Program could apply to sales tax, franchise tax, or other taxes assessed by the Texas Comptroller.    It provides delinquent taxpayers with relief from penalties and interest on previously unreported taxes due for periods before January 1, 2018. The program gives taxpayers the opportunity to "wipe the slate clean" by filing past due reports, or amending reports that underreported taxes, without paying penalties and interest. Penalties and interest can be very substantial, so this is a program that should be given serious consideration by anyone who is eligible for it. The program does not apply to periods already under audit. If you believe that you may qualify for this valuable program, the Dove Law Firm can assist you through the amnesty process.
Read more

Tarrant County's Elder Financial Fraud Unit

Financial exploitation of the elderly is a serious problem, with one in twenty older adults victimized each year according to the Department of Justice.  In May of 2017, the Tarrant County Criminal District Attorney created a new special prosecution team -- the Elder Financial Fraud Unit -- to serve as a community resource addressing the special needs of elderly victims through a program of aggressive prosecution, education and deterrence. The unit consists of two experienced prosecutors, two investigators and one support staff member, all of whom are focused exclusively on financial crimes against the elderly. By the end of 2017, 79 cases were filed. The unit also partnered with Guardianship Services to create the the Financial Exploitation Prevention Center of Tarrant County, whose mission it is to connect Tarrant seniors with the vast network of resources available to them. If you, or anyone you know, has been a victim of elder financial fraud, there are resourc...
Read more

May is National Elder Law Month

In 1963, President John F. Kennedy first proclaimed May as the month to honor Americans who are 65 and older.  The National Academy of Elder Law Attorneys supports this proclamation, declaring May to be National Elder Law Month. Today, over 10,000 Americans turn 65 every day.  Older individuals often have unique and special needs that require legal attention.  Elder lawyers have the knowledge and expertise to deal with these important legal issues, and are dedicated to meeting the needs of our older citizens.  The list of issues in which elder lawyers can be of service is a long one.  It includes wills and estate planning, drafting financial and medical powers of attorney in the event of incapacity, Medicare and Medicaid planning, issues surrounding long-term care, guardianships and probate, and elder abuse and exploitation, just to name a few.  Whatever the issue, an elder law attorney can help deal with the challenging legal problems often...
Read more